Georgieva, the IMF is “seriously considering” augmenting Egypt’s $3B loan

Cairo – November 19, 2023: The International Monetary Fund (IMF) is “seriously considering” augmenting its $3 billion Extended Fund Facility (EFF) to Egypt, explained IMF Managing Director Kristalina Georgieva, citing the economic impact of the Israeli war on Gaza.

However, the IMF director did not share a possible date of agreement or the potential amount.

Georgieva’s comments during the Asia Pacific Economic Cooperation Summit on Friday backed up media reports in October that stated that Egypt and the IMF were discussing implementing an increase of up to $5 billion.

At the time, sources close to the matter shared that Egypt was confident that it could address the issues related to the current package.

Talking to Reuters during the Asia Pacific Economic Cooperation Summit on Friday, she stressed the “devastating” impact of the war on Gaza and its economy, as well as the “severe impacts” on the West Bank's economy.

Georgieva also noted the war’s impact on its neighbors, particularly Egypt, Lebanon, and Jordan’s economies through declining tourism and increased energy costs.

Since March, the IMF has postponed two reviews for the $3 billion loan, leading to around $700 million in delayed loan tranches.

Egypt has placed an emphasis on accelerating certain measures in line with the IMF loan’s conditions, with key commitments including a flexible exchange rate system, boosting the private sector’s role in the economy, and reviving its privatization program.

During October’s IMF and World Bank meetings, Finance Minister Mohamed Maait and Deputy Minister of Finance for Financial Policies Ahmed Kouchouk shared that Egypt was in the advanced stages of discussion with the fund to determine new review dates.

To date, the IMF has not announced a scheduled timeframe for any of the two pending reviews.  

Egypt received the first payment of the EFF loan back in December 2022, worth $347 million. The 46-month loan program’s $3 billion was scheduled to be disbursed in 8 installments after bi-annual reviews.